Value-based care growth stagnant in 2022

Value-based care models did not grow from 2021 to 2022, though more dollars moved to two-sided risk-based models, according to the Healthcare Payment Learning and Action Network's annual report published Oct. 30. 

In 2022, 40.6% of healthcare dollars were in fee-for-service arrangements with no link to quality or value, similar to 40.5% in 2021. In 2022, 24.5% of dollars were spent in two-sided risk arrangements, up from 19.6% in 2021. The remaining 35% of dollars were spent in fee-for-service arrangements with links to quality or models with upside-risk only. 

Overall, 36.1% of covered lives in the report were in value-based payment arrangements. 

Value-based models were least common among commercial plans, where 54.5% of dollars were spent in fee-for-service arrangements with no links to quality or value. In Medicaid, 50.1% of dollars were spent in FFS arrangements. Risk-based models were most common in Medicare plans — in Medicare Advantage, 38.9% of dollars were spent in two-sided risk models, and 30.2% were spent in two-sided risk in traditional Medicare. 

The report used data from 64 health plans and CMS data representing all traditional Medicare beneficiaries, accounting for 87% of the insured population in the U.S. 

See the full report here

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